The Cost or Benefit of a Market Activity Borne by a Third

question 85

Multiple Choice

The cost or benefit of a market activity borne by a third party is

• A)An externality.
• B)A government directive.
• C)A monopoly.
• D)Black-market economic activity.

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Definitions:

Administrative Agency

Government bodies empowered to implement and administer particular legislation, often having the power to enforce regulations.

Agency Behavior

Actions taken by agents that represent or act on behalf of others, particularly in contexts involving principal-agent relationships.

Congress

A bicameral legislative body of the federal government of the United States, consisting of two chambers: the Senate and the House of Representatives.

Ripeness

A legal principle that determines the readiness of a case for litigation, ensuring that a dispute has evolved enough to be resolved.